Posted on: 03rd May, 2011 07:47 pm
i'm wondering if i should buy a home? i owned a home that was sold in a short sale over 1 yr ago. the debt was settled for less the amount and the rest was wrote off. since the short sale i have received a promotion and my income has increased. i currently pay 740 a month in rent. the only lender i have been able to qualify with is a local credit union. they have approved me for a 5/1 arm. the majority of lenders and programs have a 3 year wait after short sale. i am looking in the 120k range which the lender said would put my debt to income at 35%. my fico score is 680 and the only negative mark is the short sale. should i proceed with the 5/1 arm and hope to refinance to a fixed in a few years? i was considering going after a short sale to get immediate equity. i really hate paying this much in rent. please help!
The CU are generally much more favorable to their members. Hopefully the market will turn, but either way, you have to make a down payment, so you should have some equity to be able to refi on a fixed. Prices in 5 years will HOPEfully rebound....
